Visy vows to cut energy use by 10pc

Visy employees are being urged to turn off the lights as the company adopts a top-to-bottom plan to slash energy use by 10 per cent to cope with its $12 million a year carbon tax liability.

Visy’s greenhouse gas emissions total about 1.6 million tonnes a year, putting it on the list of 500 companies which will have to pay the federal government’s $23 a tonne tax.

In a letter to staff on Wednesday, executive chairman
Anthony Pratt
and chief operating officer Chris Daly explained the impact of the weekend’s carbon tax announcement and the company’s strategy to cope with it.

Visy estimated the cost of the scheme will be about $12 million a year, although the executives also warned that if the exemptions the company received were removed the cost would rise to at least $37 million and increase further over time.

Visy received temporary exemptions for emissions from its recycled and Tumut paper making activities, which were classified as energy-intensive, trade-exposed industries.

The letter also contained a dig at the federal government for not crediting the inherent environmental benefit Visy says occurs in the course of its business.

“We have been unable to get the government to recognise the environmental benefit of Visy’s recycling activities, which actually reduce greenhouse emissions to a much greater extent, than the total emissions our operations produce," the letter says.

Visy spends about $150 million a year on energy which means the tax would “add significantly" to its power bills.

Visy would seek to cut its energy use by 10 per cent across its business.

“Some Visy divisions, for example Visy Board, will be committing to energy efficiency targets much higher than 10 per cent and we encourage you all to see the 10 per cent target as the very minimum that is to be achieved," staff were told in the letter

“All employees can help towards increasing Visy’s energy efficiency levels. Sometimes it can be as simple as turning off the lights when no-one is in the room or not leaving air compressors on overnight when not in use, but there are many other simple steps which individuals can take and we will be publishing list of suggested actions soon."

The $12 million in additional annual cost would be “hard to bear" but there was some “potential upside" for Visy through some of the energy efficiency and renewable energy grant programs the government has announced.